Like a classic command economy, communist-ruled state, China still makes 'five year plans'. And the latest is poised to make China not just the world's factory, but its technological innovation power house…
Enter, thus, Xiconomics. Xiconomics is the successor of Likonomics – which implies that Xi, and not Li, is the real driver of China’s economic reforms, although it is Li who holds a doctorate in economics from Peking University.
Everyone in China is talking about Xiconomics since the People’s Daily run a series extolling «Xi Jinping’s economic thought». In practice, this amounts to Xi heading the Central Leading Group for Comprehensive Deepening Reform and the Central Leading Group of Finance and Economics Affairs. In China, these two bodies are usually presided by the Prime Minister.
The 13th Five-Year Plan is heavily imprinted by Xiconomics. It’s crucial to note that before the final version was drafted, Liu He, Xi’s top aide, had been on the phone a lot with US Treasury Secretary Jacob Lew; they extensively discussed China’s exchange-rate policies.
One of the key aspects of Xiconomics is Beijing preferring mergers and acquisitions of state-owned enterprises instead of privatization. Economists interpret it as Xi bolstering state capitalism to tap plenty of overseas markets – many of them virgin – to make up for slowing domestic growth.
And that leads to the crucial importance of the New Silk Roads – or One Belt, One Road (OBOR), according to the official Chinese terminology. State-owned enterprises will play a key role in OBOR – which will be essentially creating Eurasia integration via an immense trans-Eurasian emporium.…Russia Insider
China Is Already Living in 2020
Pepe Escobar
3 comments:
Xiconomics...
It’s how Singapore became rich and prosperous. Went from being a swampy backwater to a business powerhouse in under 50 years with a stable social welfare system that puts ours to shame.
Singapore still operates under British Common Law from its colonial days. The state government owns, in some cases, 90% of certain industries. What that allows it to do, when necessary, is change the laws quickly--sometimes within a day or week--to get rid of arcane laws that restrict business while maintaining their civil order. It’s a highly successful government/business partnership that also provides for their people in ways we still relegate to, and debate as, Dem/Repub issues. If you’ve ever been to Singapore, you’d know the place is jumpin’. Fabulous city.
http://www.npr.org/2015/03/29/395811510/how-singapore-became-one-of-the-richest-places-on-earth
Correction. I don’t know if “own” is the right word: "owns, in some cases, 90% of certain industries.” ‘Has invested in’ might be better. We, on the other hand, squeal at the thought.
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